Case Study Of SPD Bank’s Capital Supplement Methods

In recent years,capital supplement has become increasingly important for commercial banks.From the perspective of external factors,with the emergence of the latest regulatory standard Basel III,china regulatory policies have also changed.In June 2012,“Commercial Bank Capital Management Measures(Trial)” was issued,and the Chinese version of Basel,while ensuring compliance with international regulatory standards,also combines the characteristics of China’s own banking industry,which is feasible.It made China’s regulatory framework appear multi-layered.Through comprehensive calculation,China’s banks capital adequacy ratio is 7.5%,while systemically important banks should reach 8.5%.At the same time,as China’s economy has changed from high-speed development to high-quality development in recent years,the economy is facing downward pressure,which poses higher challenges for commercial banks.From the perspective of internal factors,with the development of financial technology,internet finance,and green finance,commercial banks need to expand their business models.Adequate capital will provide sufficient funds for their business development and improve competitiveness.At the same time,from the perspective of the overall development of the banking industry in 2018,the development of the banking industry is stable.The total assets of the banking industry exceeded 26 billion yuan,an increase of 6.4% year-on-year,and the profitability has increased steadily.All require commercial banks to enhance capital management capabilities.From the relevant datas published by the CBIRC in the past five years,we can see that the capital adequacy ratios of banks differ greatly and joint-stock commercial banks show a lower level.It is particularly important to increase the capital adequacy ratio of joint-stock commercial banks and expand the supplementary mechanism.In summary,the choice of capital supplement methods has become a key issue for commercial banks.The thesis mainly includes the following parts:The first part is the introduction.Based on the analysis of the background and significance of this topic,and a thorough review of domestic and foreign literature on capital supplement,innovations and shortcomings of the article,research framework,research methods,are proposed.The second part is the related theoretical analysis of capital supplement of commercial banks.Explain the definition and composition of commercial bank capital,and introduce the theory of superior financing and financial supervision,and provide a theoretical basis for subsequent research.The third part is the capital gap of commercial banks and supplementary channels.First,introduce the current capital structure,total capital,and capital adequacy ratio of China’s commercial banks.Secondly,the future capital gap is measured.Finally,introduce the supplementary channels.The fourth part introduces the case of SPDB’s capital supplement.This article first introduces the basic situation and the status of capital of SPDB.Secondly,it introduces the capital supplement of SPDB.The fifth part is the case analysis of the capital supplement of SPDB.Analyze the changes in the total capital,capital structure,and capital adequacy ratio after using of each capital supplement tool,and then analyze the effect of each capital supplement tool.Different capital supplement methods have comparative advantages.The sixth part is conclusions and recommendations.Through analysis,it is concluded that there are differences in different capital replenishment methods,different commercial banks apply different capital replenishment methods,and capital replenishment methods have comparative advantages.It also puts forward targeted suggestions for commercial banks to prefect capital supplement programs and continue to innovate and improve various capital supplement tools.